The New York Stock Exchange-listed customer engagement services provider TeleTech Holdings, Inc will acquire California-based business and knowledge process outsourcing services firm Motif, Inc.
TeleTech will acquire Motif through its subsidiary TeleTech Services Corporation in two transactions. In the first deal, TeleTech will acquire a 70% stake in Motif from private equity and certain individual investors for $46.9 million (Rs 305 crore). In the second transaction, it will buy the remaining 30% stake from Motif’s founders by May 2020, TeleTech said in a stock exchange disclosure.
As part of the deal, Motif’s founders Kaushal Mehta and Parul Mehta will join TeleTech.
“This deal provides us with capabilities to help our clients build engagement with their customers by ensuring online interactions are safe and protected from fraud. It also adds dynamic digital brands to our client portfolio, deepens our digital and analytics capabilities and expands our footprint in India,” said Ken Tuchman, chairman and chief executive of TeleTech.
“Our trust and safety services are growing and we are excited to bring our capabilities to new geographies and industries through TeleTech’s portfolio of blue-chip clients,” said Kaushal Mehta, founder and CEO of Motif.
Founded in 2000 by Kaushal and Parul, Motif is based out of San Mateo in California. The firm provides BPO and KPO services to e-commerce companies in the retail, travel, financial services and affiliate marketing verticals. It has delivery centres in Ahmedabad and Manila with around 2,800 employees.
The company operates in India through a wholly owned subsidiary Motif India Infotech Pvt. Ltd. In financial year 2015-16, Motif India Infotech recorded a total income of Rs 137.8 crore and a profit after tax of Rs 29.3 crore, according to VCCEdge, the data research platform of VCCircle.
Motif previously raised an undisclosed amount in its Series A funding round from Rohit Desai of Desai Capital Management, Amit Shah of Artiman Management and Purnendu Chatterjee of The Chatterjee Group, among others, according to its website.
TeleTech offers customer engagement services through its proprietary offering Humanify. Founded in 1982, the company helps clients acquire and retain customers.
Edelweiss was the financial advisor to Motif on the transaction.
Recently, the BPO space has seen a few M&A deals. This week, a consortium of private equity investors led by Singapore-based Capital Square Partners completed a leveraged buyout of Essar Group’s business process outsourcing (BPO) unit, Aegis Ltd.
In April, HCL Technologies Ltd agreed to acquire US-based Urban Fulfillment Services LLC for up to $30 million (Rs 193 crore) in cash to boost its mortgage business process outsourcing business.